#2, but a non-issue for me. I used to have a GF who wanted to see me in a flaccid state because it was so different from the way she normally saw it. Wasn't too successful since she always made me aroused.
But I've worn a leotard to the mall before (during Halloween), and had some guy comment on how small my flaccid penis is. The comeback my friend came up with was, "When it's small, they let you stick it anywhere."
